I just received an offer from ET Energy Partners for minerals I own in the Robert Steel Survey, Sections A-820 & 827 in Leon County. It seems like a weak offer at $500 per net mineral acre and a 17.5% royalty which includes my portion of their costs incurred for gathering, treating, dehydrating, compressing, processing, transporting, and delivering production and any costs of marketing or rendering marketable or more valuable the covered minerals. Can anyone tell me an approximate percentage of a royalty payment that these fees end up costing the royalty owner? Thanks!
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You should be able to get at least 20% royalty and no expenses or shared cost. They pay for all the treatment etc. Find a good oil and gas attorney before signing a deal.
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Where are these abstracts located in Leon County?
You can use the RRC map to find the abstract location.
https://gis.rrc.texas.gov/GISViewer/
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For December 2025 production in Leon County, Comstock reported a gross sales price of about $3.00 per MCF. Reported marketing cost (gas treatment, transportation, etc.) was about $1.10 per MCF.
Without a cost-free royalty provision, post-production costs would consume about 37% of the royalty.
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That is an awful offer. I would counter at 25% expense free. I have no opinion on bonus amount. Lease form is very important. Join TLMA and use their form.
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Leon County isn’t the Permian Basin. I am not seeing any royalty for 25% in the Cotton Valley unless the acreage is huge since this is a natural gas play.
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The directories tab above has listings for TX attorneys that can help you get a reasonable price for your lease. Most offers start out low to see who will bite. The draft lease is not likely to be in your favor, so an investment in professional help is wise.
Contrary to your comment, I am in receipt of a 25% cost free royalty on a natural gas lease in Leon County. I know many others are as well.
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That’s what Ms. Herington was saying.
Where is your lease located?
That’s the hard part. The land we OWN is 320 acres within Abstract 541. However, even though it has been leased 2+ times, 1952, 1984, the actual whereabouts are confusing at best. And there were never any known profits associated. Two different Grantees: Gresham (2x) & Steward (1x) worked our 320 acres along with hundreds of other pooled plots.
I’ve spent hours working through the 1888 Deed and cryptic land markings. And the Grantees ALWAYS referred to the cryptic Deed language and NEVER UPDATED maps with the County.
Present-day maps and existing plots lead me to believe that previous leases are either in unmarked area of Abstract 540 (which was actually surveyed at the same time), otherwise, it would only stand that others are squatting on our land.
I already posted the cryptic land description that uses varas, Black Jack Markers and such… Abstract (A-541), prior lease details (e.g., 1984 OR/00560/479) - Deed dated January 2, 1952, and first in 1888, Robert S. Gould Senior and Jr.
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From Serena Gould Early et al. → Gilbert Gresham
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Recorded in Volume 195, Page 408
Being 320 acres of the H. H. Millions League and Labor Survey, Abstract No. 541, situated in Leon County, Texas, being the same land
conveyed by Robert S. Gould to R. S. Gould, Jr., by deed dated June 23, 1888, recorded in Volume Z, page 5, Deed Records of Leon County, Texas, and described as follows:
On Beaver Dam Creek waters of Trinity River
COMMENCING at the Southwest corner at a stake from which bears a Black Jack 5 inches diameter S 47 W distant 4-2/10 varas, a Black Jack 6 inches diameter Marked L. A. 17 E distant 5-5/10 varas.
THENCE N 15 E 510 varas cross spring branch 1 vara wide course N 20 E 950 varas cross Beaver Dam Creek course S 75 E 1900 varas to the corner a stake in prairie from which bears a hickory 5 inches diameter marked H. N. 65 E. distant 42-1/10 varas.
THENCE S 75 E 560 varas Black Jack 8 inches diameter line tree 950 varas to a corner a stake from which a Post Oak 12 inches diameter N 75 E marked X distant 48 varas Post Oak 15 in diameter S 9 1/2 E marked A distant 5-5/10 varas.
THENCE S 15 W 80 varas red Oak 15 inches diameter line tree 1090 varas cross Beaver Dam Creek course S 75 E 1900 varas to corner a stake from which bears a Post Oak 12 inches diameter S 36 W marked X distant 2 varas, Black Jack 4 inches diameter N 40 1/2 W distant 5-7/10 varas.
THENCE N 75 W 948 varas to the PLACE OF BEGINNING
Are you talking about Horseshoe Ranch where Beaver Dam Creek hits the river or Brown land on the north side of the creek?
What I’ve said/written is all I know… One important update… Unfortunately, our relatives sold the land in exchange for mineral rights thereafter. They sold it for $4,800 in 1952. That land would be worth nearly a million today. Oh well, and the mineral rights, I know who owns the land, so just have to seek them out now… Gresham… really, really smart prospectors: bought anyone’s land that was fool enough to sell it…
Thanks for the responses to my questions regarding my mineral interest in the Robert Steel Survey in Leon County. I was able to get ET Energy Partners to increase their offer from $500 per net mineral acre to $1,000 per net mineral acre. They also agreed to a “no cost” lease with a 20% royalty. Hoping this will be included in a pool for drilling.
Doubled their price. Good job.
I have a 20-acre tract in Leon County of which I own around 3 acres minerals. I have received a lease oil and gas paid-up agreement which I was told was for oil and gas but what I read it is a 20-acre land agreement for gas and oil exploration with a one-time flat fee for 5 years with 2-year renewal. I am somewhat familiar with real estate leases but I didn’t want to lease my land just wanted to lease my mineral rights. Is this normal in the oil business?
Acre land use lease.
I have heard companies doing total acre and not mineral acres leasing years ago but not today’s time.
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Most mineral leases only state the gross acreage. They do not state the net mineral acres, so easy to get confused about that. Personally, I never lease for more than three years and never take an extension. It is normal to have a paid up lease and only get the one payment. You do need to clarify if they are trying to lease your surface and minerals or just minerals. If you have not leased recently, it is wise to consult with an oil and gas attorney as draft leases are usually in the lessee’s favor and need significant edits.
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